Today, the Federal Government provided more details on the Canadian Emergency Wage Subsidy and announced support for the charitable sector.
- Companies will be able to start applying for the program on Monday, April 27 at: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html
- The government launched a calculator to help businesses determine eligibility: https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy/cews-calculate-subsidy-amount.html
- The government expects payments to companies to begin on May 5.
- Background Details:Wage subsidy of 75% available on a maximum salary of $58,700 ($847 per week) for up to 12 weeks.
- Available to all Canadian businesses, not-for-profits and charities that see the required revenue reductions. Public bodies will not be eligible for this subsidy.
- Businesses will need to show a 15% revenue reduction in March and 30% reduction in April and May (compared to either 2019 figures or 2020 figures), or to an average of their revenue earned in January and February 2020. There would be no overall limit on the subsidy amount that an eligible employer may claim.
- Subsidy will be retroactive to March 15, 2020.
- Non-profits will be allowed to include or exclude government funding in their applications.
- Businesses may measure revenue on the basis of accrual accounting (as they are earned) or cash accounting (as they are received); once a method is chosen, they will have to stick to the chosen accounting method.
- Once an employer is found eligible for a specific period, they will automatically qualify for the next period of the program.
- The CEWS will provide an additional amount to compensate employers for their contributions to the Canada Pension Plan, Employment Insurance, Quebec Pension Plan and Quebec Parental Insurance Plan paid in respect of eligible employees who are on leave with pay due to COVID-19.
- The employer will be required to repay amounts paid under the CEWS if they do not meet the eligibility requirements.